Resale computer iteam

This query is : Open

Rajnish (Querist)
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31 May 2010 Dear All,

Please take a note that, we are engaged in Software development.

Recently we have purchased computer(PC) and install addition software in that machine

Now we want to sale this item to client.

Further note that, we have services tax no. and VAT not applicable to us.

I request you to please suggestion, which type of tax applicable to us.

A waiting for your reply.

Your co-operation will be highly appreciated

Regards
Rajnish

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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31 May 2010 In my opinion, only Service Tax will be applicable. As you have already said that VAT is not apllicable

Rajnish

Rajnish (Querist)
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31 May 2010 Dear Mr. Sunil,

thanks for your reply.
but sir, we will be sale computer (PC) to client with software.
then VAT not applicable?
If services tax applicable then service tax charge on whole amount i.e. computer cost + software cost?

Please guide me.

your co-operation will be highly appreciate.

Regards
Rajnish

CA Kamal Gangaramani

CA Kamal Gangaramani (Expert)
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21 June 2010 Always mention the state in which you are located.

As you have made sale, sales tax is applicable

Also verify your state vat/sales-tax law to find the limit of turnover above which you are liable to get registered and pay vat/sales tax